Food & Beverage Management

PART A

1. What is satellite kitchen?

        Satellite kitchen is a food service establishment that stores, prepares, portions, or packages food for service elsewhere. There are several types of satellite kitchens.

2. What is purchase specification?

     Purchase specification is a document that describes the requirements for a purchase and provides guidelines for purchasing personnel: A purchase specification provides purchasing personnel with guidelines and vendors with criteria for acceptability.

3. Define menu?

        A menu is a detailed list of options offered to the customer when they come to eat or drink at the restaurant or bar. They offer a wide variety of choices, and are priced differently based on the ingredients used, time taken to cook the dishes, or the season and availability of ingredients used.

4. What do you mean by banquet?

      Large formal meal for many people, often followed by speeches in honor of someone: Medieval banquets are held in the castle once a month. It was the organization’s annual black-tie awards banquet at a fancy New York City hotel.

5. What is Recheuffe.

      Rechauffe refer to treatment given to left over food, (Leftovers – Uneaten edible remains). A dish of food that has been warmed again.

6. What is portion control?

        Portion control is the practice of managing the amount of food you eat at each meal or snack to ensure you’re not overeating or undereating.

7. Define Budget?

        Budget is a spending plan based on income and expenses. In other words, it’s an estimate of how much money you’ll make and spend over a certain period of time, such as a month or year.

8. Define menu engineering?

        Menu engineering is a strategy that restaurants use to improve their menus and increase profits. Restaurants analyze sales data to understand which dishes are most popular and profitable. They also consider food costs and the contribution margin for each item.

9. What is cost?

      Cost is the value of money that has been used up to produce something or deliver a service. It can also refer to the amount or equivalent paid or charged for something.

10. What do you mean by cook chill system?

        Cook-chill system is a food preparation method that involves cooking food in bulk, rapidly chilling it, and then storing it for later use.

PART B

11(a) Write a note on standard purchase specification.

        Document Information. Standard purchasing specifications (SPS) are documents that describe the exact requirements for commodities for an establishment.

Standard purchasing specifications (SPS) are documents that describe the exact requirements for commodities for an establishment. They assist in developing standardized recipes and provide guidelines on weight, size, quality, and other attributes.

11(b) Differentiate the Dry storage and cold storage?

Dry storage and cold storage differ in the temperature and humidity conditions in which items are stored:

• Dry storage : Items are stored in a dry place that doesn’t necessarily need to be cold. The ideal temperature range for dry storage is 50°F to 59°F (10°C to 15°C). To keep items safe, you can:

1. Keep them off the floor
2. Label and date them
3. Maintain good airflow
4. Keep the area clean

• Cold storage : Items are stored in a cold environment, such as a refrigerator, to preserve them for longer. Cold storage temperatures typically range from 32°F to 38°F, depending on the item.

Dry storage is used for non-perishable goods, while cold storage is used for perishable goods. Another difference is the temperature at which the goods are stored. Dry storage typically does not require a specific temperature, while cold storage requires the goods to be stored at a controlled temperature.

12(a) Briefly explain the advantages of cook freeze system?

The cook-freeze system has many advantages, including:

• Food safety : Freezing food prevents the growth of harmful bacteria and microorganisms that can cause food poisoning.
• Consistent quality : The cook-chill system ensures that each batch of food is of consistent quality.
• Reduced labor costs : Preparing food in bulk reduces the number of staff needed, which can increase productivity and scheduling flexibility.
• Stress reduction : Chefs can prepare food when it’s convenient for them and then reheat it before serving, which can reduce their stress levels.
• Extended shelf life : The cook-chill system extends the shelf life of food products.
• Economic efficiency : The cook-freeze system is an economical way for catering companies to deliver high- quality food.

Since Cook Freeze is stored frozen, it has the unique advantage of being resistant to quality deterioration even after long-term storage. Cook Freeze is suitable for businesses that require long-term storage and inventory.

12(b) Draw the layout of storage area and explain?

When designing a warehouse layout, you can consider things like the purpose of the warehouse, storage requirements, and material handling equipment needs. Here are some common warehouse layouts:

• U-shaped : The most common layout, with shipping and receiving docks next to each other and storage in the middle. Products move in a half-circle lane, with fast-moving products on the inside and slow-moving products on the outside.
• L-shaped : Receiving and unloading areas are on one side of the warehouse, and shipping and picking areas are on the other side. This layout reduces back-and-forth movement and prevents traffic congestion. However, it requires a lot of space and two sets of loading and unloading equipment.
• I-shaped : Also known as through flow, this layout has shipping and receiving areas on opposite sides of the warehouse. It’s good for operations that need high-volume storage.

Here are some other tips for designing a warehouse layout:

• Keep 15–20% of locations open and available.
• Consider auxiliary zones like returns, packaging, obsolete materials, office, changing rooms, and toilets.
• Incorporate automation, item tagging or barcoding, and a centralized computer system. Get input from managers, drivers, and materials handling contractors.

13(a) Write the objectives of inventory control

As we know that the overall objective of inventory control is to achieve satisfactory levels of customer service by keeping the inventory costs within reasonable bounds.

Inventory control is a process of ensuring that a business maintains the adequate quantity of stock to meet the forecasted demand with minimum holding cost

Objectives of Inventory Management System

• Improving Customer Service.
• Sufficient Stock.
• Increasing Product Sales.
• Reducing Cost Value of Inventories.
• Cost-Effective Storage.
• Operational and Financial Objectives.
• Just-in-Time (JIT).
• ABC Analysis.

13(b) List out the records to be maintained in bar and write its importance.

Here are some records that a bar should maintain:

• Inventory: A bar should maintain records of its inventory, including:
• Inventory counts: A bar should count its inventory frequently, consistently, and when the business is closed.
• Inventory tracking: A bar should use a tracking system to record inventory counts.
• Inventory usage: A bar should calculate its inventory usage by adding the items ordered during the month to the starting inventory, and then subtracting any duplicates from the ending inventory.
• Variance: A bar should calculate the variance for each product to understand how much product is lost or not sold.
• Orders, invoices, and purchases: A bar should keep detailed records of all orders, invoices, and purchases.
• Holidays: A bar should be aware of upcoming holidays, including big holidays and hashtag holidays, and plan accordingly.

A bar should also use the first in, first out (FIFO) method to move older items to the front of the shelf so that they are used first.

14(a) Write a short notes on Forecasting sales.

Sales forecasting is the process of estimating future revenue by predicting how much of a product or service will sell in the next week, month, quarter, or year. At its simplest, a sales forecast is a projected measure of how a market will respond to a company’s go- to-market efforts.

Variance analysis is a method of assessing the difference between estimated budgets and actual financial performance. It’s a quantitative approach that helps businesses maintain better control over their operations by identifying discrepancies between what was planned and what occurred

14(b) Mention the steps involved in Budget preparation.

The steps for preparing a budget can vary depending on the context, but here are some general steps you can take:

• Review the previous period: Look back at the previous period’s financial statements.
• Calculate revenue: Determine your current income.
• Identify expenses: Separate fixed and variable costs.
• Adjust expenses: Make changes to your expenses to meet your financial goals.
• Forecast spending: Estimate how much you’ll spend in the future.
• Monitor and review: Regularly review your budget to make informed decisions.
• Create a contingency fund: Always include some extra funds in case your budget is not completely accurate.
• Communicate the budget: Clearly communicate your budget to others

15(a) Mention any two F and B function areas and explain.

Two functional areas of food and beverage (F&B) are menu planning and storage:

• Menu planning : Involves planning and organizing the menu, costs, and supplies. It also includes keeping up with industry trends and working with other departments to innovate menu and service offerings.
• Storage : Involves arranging goods in specific areas for particular materials until they are needed for use. The storage spaces need to be planned based on the type of food being stored and how quickly it spoils.

Other responsibilities of the F&B department include:

• Developing policies and procedures
• Staffing
• Purchasing materials and products
• Processing and serving food and beverages
• Ensuring compliance with health and safety regulations
• Providing excellent customer service

15(b) Write a note on the following Coffee shop and banquet?

Small, informal restaurant where drinks and small meals are served, sometimes in a larger shop or building: the hospital/theater coffee shop. A1. A shop where different types of coffee are sold, either to drink or as beans or powder.

Sumptuous feast. Especially : an elaborate and often ceremonious meal for numerous people often in honor of a person. A state banquet. 2. : a meal held in recognition of some occasion or achievement.

PART – C

16(a) Draw the layout of kitchen and explain the functions of all sections.

Here are some common kitchen layouts and their functions:

• Work triangle : The stove, sink, and refrigerator are arranged in a triangle to maximize efficiency. The distance between each side of the triangle should be 3.9–8.8 feet, and the total length should be 13–26 feet.
• U-shaped : This layout wraps around three walls, creating a cooking zone and dividing the kitchen from the rest of the house. It provides plenty of storage space and allows for multiple users to navigate the kitchen together.
• Island : The non-cooking stations, like the dishwashing station and food preparation areas, are pushed up against the perimeter of the kitchen. The island counter can serve as a prep zone, a breakfast counter, or even a cook zone.
• Zoning : The kitchen is divided into separate zones for each activity, like food prep or dishwashing. This layout allows staff to focus on their area of expertise and prepare many different types of dishes at the same time.

Other things to consider when designing a kitchen include:

• Menu and dining sequence : The food cooking and processing areas should be arranged according to the menu and dining sequence.
• Cleaning area : This section includes a dishwasher, sink, and drying racks for cleaning dirty utensils, dishes, and other things.
• Work path : A natural work path should be planned between the cooking, washing, and storage zones.

16(b) Explain the methods adopted for purchasing beverages.

Here are some methods for purchasing beverages:

• Purchasing methods : These include contracts, periodic ordering, daily quotations, and cash purchases.
• Supplier selection : When choosing a supplier, you can consider factors like price, quality, and delivery.
• Inventory management : You can use a par level system to ensure you have the right amount of each item at the right time. For highly perishable items, you can use a just-in-time (JIT) inventory system to order only what you need when you need it.
• Replenishment procedures : You can set up an automatic reordering process when your supplies reach a certain level.
• Perpetual inventory system : This system keeps a running total of purchases, deposits, usage, and withdrawals. You can take physical inventory counts periodically to ensure the accuracy of the perpetual inventory system.

Here are some tips for issuing beverages:

• Issue beverages at set times during the day.
• Only issue beverages against a requisition note signed by an authorized person. For large requisitions, hand them in several hours before the items are needed.
• Make two copies of requisition notes. The cellar man keeps one copy to make entries in the cellar records, and the other copy is passed to the control or accounts office

17(a) Explain the procedure in stages for purchasing, receiving and storing beverages?

The procedure for purchasing, receiving, and storing beverages involves several stages, including:

• Purchasing : Managers consider the types and quantities of beverages to buy to meet customer demand. They also assess vendors based on cost, quality, reputation, speed, reliability, ethics, and social responsibility.
• Receiving : Managers ensure that the delivered products match the order and are in good condition. They also inspect the quality, check the prices, and decide whether to accept or reject the delivery.
• Storing : Managers safely store the delivered products and issue them as needed. They also maintain a perpetual inventory balance for each item.
• Replenishment : Managers establish a procedure for restocking materials to avoid inventory outages and ensure on-time delivery.

Other considerations include:

• Inventory assessment : Managers understand beverage inventory procedures, including the amount and value of the products held in the operation.
• Beverage requisition form : A beverage requisition form is used for each bar to track the original issue, additional issues, returns, and other information.
• Food and beverage control : Food and beverage control is the guidance and regulations for operating catering activities in hotels, restaurants, and other establishments

17(b) Explain the different types of Bar frauds usually occurs in hotel and how that can be controlled.

Some types of fraud that can occur in hotels include:

• Fraudulent prepaid bookings : Individuals or groups posing as travel agents make advance bookings with compromised credit cards. They then sell these bookings to travelers at a higher rate.
• Coupon fraud : Customers exploit coupons or discounts. For example, they subscribe with different emails to receive multiple coupons.
• Payment fraud : Someone steals another person’s payment information and uses it to make unauthorized transactions or purchases.
• Falsification of tips or other charges : In some areas of the country, where many foods and beverage sales are complimentary, other incidents occur where a dinner is a bing paid for by someone other than the guest. The extra amount of beverages or food may be placed on the checks to increase the value of the sale.

Ways to prevent theft and waste at your bar.

• Hire the right people.
• Ring up every product.
• Routinely check bartenders’ tabs.
• Reconcile cash drawers at the end of each.
• Enforce a pour policy.  
• Keep employees’ bags in a designated.
• Hire secret shoppers.
• Lock up the extra supply.

18(a) Explain the different methods of pricing food.

There are many different methods for pricing food, including:

• Subjective pricing: Uses assumptions, intuition, and estimates to determine prices
• Objective pricing: Uses real operational costs to determine prices
• Simple prime cost: Adds the cost of each food item to the total average labor costs
• Value pricing: A strategy where quality surpasses price
• Psychological pricing: Designed to have a positive psychological impact on the customers
• Differential pricing: Charging different prices to different groups of customers for the same product or service
• Cost plus method: Calculates the standard cost of delivering the relevant goods, and adds on top of that price a standard profit margin
• Price leadership: Considers what similar products are available, what people are already willing to pay for similar items
• Marginal contribution method: The contribution margin is the difference between the selling price of the dish minus the variable costs
• Markup pricing: A specific percentage of product cost is added to the product’s end price to obtain the final price. Correct pricing can lead to customer satisfaction, increased sales, and greater capacity to compete with other restaurants.

The two types of pricing are cost-oriented and market-oriented pricing methods.

• The cost-oriented method of pricing is a traditional method that is widely used by most entrepreneurs even today.
• While in the market-oriented pricing method, the product price is decided based on the latest market trend and research.

18(b) Broadly explain the various technologies that are in practice in F and B service industry?

Many technologies are used in the food and beverage (F&B) industry, including:

• Robotics and automation : Service robots can deliver food and improve customer service.
• Digital menus : Digital menus at tables can streamline ordering and payment, and eliminate the need for waitstaff.
• Mobile apps and online ordering : Guests can use ǪR codes or NFC to scan, place an order, and pay for it through a hotel’s guest app.
• AI and machine learning : AI and machine learning can help predict consumer demand and personalize customer experiences.
• Internet of Things (IoT)-connected sensors : Sensors can detect potential defects or contaminations, maintain safe temperatures, count inventory, and monitor equipment performance.
• Blockchain technology : Non-fungible tokens (NFTs) can be used to grant owners access to special reservations or reward diners for their loyalty.
• Computers : Computers can calculate revenue, occupancy rates, and sale turnover. This helps food service personnel plan their manpower during peak season.

Other technologies used in the F&B industry include:

• Augmented reality (AR)
• Drones Cybersecurity
• Additive manufacturing
• Advanced robotic systems
• Automation and control systems

Artificial intelligence (AI) and machine learning (ML) are helping F&B companies predict consumer demand and personalize customer experiences. By analyzing vast amounts of data, these technologies can forecast buying patterns and preferences with high accuracy.

Digital transformation in the food and beverage industry involves the introduction of advanced technologies such as artificial intelligence, machine learning, cloud computing, and data analytics.